Help Please? Tax Owing-what to do?

[timtheartist]

Hello All,
As you’ll gather, I’m a new member here, and I’m hoping someone my give me some advice, as I’ve not slept all night for worry!
I managed to get my self assessment tax return filed online on Saturday in time for the deadline, but I’m sick with worry as I can’t afford to pay all of the tax I owe. Now, I realise I’m going to get a fine, but I’m so worried about prosecution etc, and just don’t know what to do about this situation right now. I’ve not intention of just ignoring this, but can anyone tell me what I’m best doing, right now?
I owe about 3.2k, and at the moment I can only pay 1.5k. I’ll be able to pay more at the start of Feb and hopefully clear it up completely, but am I likely to be prosecuted for non payment in the intervening time?
I must reiterate, I’m not trying to find a way of not paying, the exact opposite in fact. My family finances have been such this year that I’ve just not been able to put any cash aside for this.
The 3.2k includes the first payment in advance for 08/09. Can I simply pay the 1.5k I have available now into my SA account… what to do?
Could anyone please give me some advice ASAP?
Kind regards to all,
Tim.

 

[Jenni384]

Dont panic, Mr Mainwairing!

HMRC know people are feeling the effects of the current financial climate and are being nicer to people at the moment.

Ring them, talk to them, and arrange a payment plan. It sounds like you can pay pretty quickly compared to a lot of people. You have nothing to worry about, so make a cup of tea and relax, it really is ok

 

[dp0848]

Just to add to Jenni's post, you won't get fined as you filed the return on time. However you will be charged interest on the outstanding debt at a rate of, off the top of my head, 3% per annum.

David.

 

[Esther Brightman]

You are certainly not in very bad position relatively speaking, but worry about finances are very personal to each and every one of us. You are doing all the right things and making an arrangement with them is the best route for you.

By offering to clear nearly half of the debt in one payment puts you in a very good standing, then coming to an agreement to clear the outstanding is a plan.

Remember that worry zaps energy from us and is futile, decide a plan and stop worrying then you can turn your mind to earning the money needed to implement the plan.

Remain positive and focused and things will fall into place the way you are directing them to.

 

[DIY Accounting]

It could well be as late as July before HMRC threaten prosecution but in fact only very rarely would they take such action and allmost certainly not if you speak to them and agree to pay in installments.

You are not in a bad position and no need to worry.
Thousands are in a far worse position.
Pay them the 1500 and the balance over the next couple of months and while you will pay a little interest no action will be taken against you.
You have done the right thing by filing your tax return.
Sleep well tonight.

 

[spooks]

Much like the previous posts, do not worry, the people at HMRC are willing to help , give the payment support unit a call on 0845 302 1435 and the problem can be resolved there and then. Have your reference numbers ready, a note of the figures and a proposal for payment, as long as it is reasonable - and your numbers dont sound too bad , you should get an agreement there and then.

Give them a call, they wont bite!!

Spooks

 

[JulianHobbs]

Definitely agree with everybody's postings. Pay them what you can now, and call them to discuss your situation. The Revenue can arrange a payment plan to fit your current circumstances. This is certainly better than getting letters threatening legal action

Julian Hobbs
Chartered Accountant

 

[taxattack]

No need to worry unduly at present. One thought - will your earnings in 08-9 be lower than 07-8? In which case you can apply to reduce your payments on account and hence your current liability (form SA303).

Chris

 

[BusinessIdeas]

Take the advice of the caring people on here and don't worry. HMRC wont prosecute you if you offer a payment plan. One extra word of advice though: don't give them everything you have in the world - you never know what you might need some contingency cash for - something unforeseen like a car breakdown etc.

 

[KidsBeeHappy]

I remember someone once giving me wise advice (this was back in the day when revenue & customers were 2 different entities). If you have to choose between paying the taxman and the vatman, always pay the taxman, they are very agreeable to arrangements to pay. Whereas Customs are a lot tougher as they spend the rest of their time chasing drug dealers!!

 

[Deleted member 30151]

Try to make sure any outstanding tax for 2007/08 is paid before 28 February or the Tax Man will add an extra 5% on to that part of your liability.

 

[Jenni384]

Try to make sure any outstanding tax for 2007/08 is paid before 28 February or the Tax Man will add an extra 5% on to that part of your liability.

If you make a payment arrangement before the end of Feb they will waive the surcharge. As long as you've been in touch with them before the end of Feb you will be ok on this front.